The firm has begun renovating the former Katz Drugs building, a three-story, 20,000-square-foot structure at 730 Minnesota Ave. that it purchased from out-of-town owners for $180,000 earlier this year.

In addition, Loretto Properties has reached an agreement to purchase the adjacent 30,000-square-foot, two-story building at 736 Minnesota Ave. for $100,000 from the Unified Government of Wyandotte County/Kansas City, Kan.

James Arkell, a vice president with Loretto Properties, said the company plans to spend about $1.5 million restoring the vacant buildings. A.L Huber, a Leawood general contracting firm, will do the work on both structures.

New tenants will include Cup on the Hill, a nonprofit gourmet coffee shop dedicated to teaching job skills to youth in the neighborhood. It will be located on the ground floor of the old Katz building, which is expected to house a number of nonprofit organizations and professional services offices on its top two floors.

The building at 736 Minnesota Ave., which formerly housed U.S. Environmental Protection Agency employees, is being pitched as a satellite classroom location to educational institutions including Kansas City Kansas Community College and Donnelly College.

Greg Kindle, president of the Wyandotte Economic Development Council, is helping the developers recruit tenants.

Kindle, who helped convince Loretto Properties to invest in downtown Kansas City, Kan., said Minnesota Avenue recently got a boost from development of a new transit center and streetscape at Seventh Street and Minnesota Avenue.

Thanks to Loretto Properties' investment, Kindle said, the city has decided to extend its streetscaping efforts along the length of Minnesota Avenue from Seventh to Eighth streets.

The area also is benefitting from Foutch Brothers LLC's recent conversion of the old Horace Mann School, 824 State Ave., into 30 apartments.

In addition, Mayor Mark Holland is working toward development of a downtown market and fitness operation at 10th Street and State Avenue.

"All of that feeds into revitalizing Downtown," Kindle said.

Lamar Hunt Jr., son of the late founder of the Kansas City Chiefs, is dedicated to charitable causes and previously focused Loretto Properties' efforts on residential real estate, Arkell said.

Formed three and a half years ago, Loretto Properties has purchased and rehabilitated about 20 single-family homes that, due to their deteriorating conditions, were pulling property values down in their established neighborhoods.

The homes, all on the Kansas side of the metropolitan area, have been rented to families who share Loretto Properties' desire to see the neighborhoods thrive.